1. Social Infrastructure for National Development in Nigeria By Gary Coates November 15, 2005

2. 2 Contents: IntroductionScorecard Regulatory Challenges in the Telecoms Industry NCC Strategic Framework Strategic Policy Initiatives for 2005 & Beyond NCC Projections Conclusions

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4. 4 Introduction In line with global trends of liberalization in the 1990’s, the Federal Government promulgated established the Commission as the arrow head for the liberalization and deregulation of the telecom sector. In line with global trends of liberalization in the 1990’s, the Federal Government promulgated established the Commission as the arrow head for the liberalization and deregulation of the telecom sector. This liberalization thrust of the decree was further strengthened by the National Telecoms policy (NTP) to remove provisions that inhibit full competition and fully liberalize the sector. This liberalization thrust of the decree was further strengthened by the National Telecoms policy (NTP) to remove provisions that inhibit full competition and fully liberalize the sector. The above paved way for the licensing of several operator in the various markets within the Telecom Industry. The above paved way for the licensing of several operator in the various markets within the Telecom Industry. Prominent amongst these licenses are the GSM and the Second National Operator. Prominent amongst these licenses are the GSM and the Second National Operator.

5. 5 Introduction Cont’d The Industry has witness tremendous growth in the last three years. The Industry has witness tremendous growth in the last three years. This growth and the rapid deployment of services has presented several challenges for NCC and the industry. This growth and the rapid deployment of services has presented several challenges for NCC and the industry. NCC Strategic Management Plan aims to focus on meeting these challenges and ensure network efficiency, and to ensure that emerging issues are promptly taken into the mainstream of regulatory activities. NCC Strategic Management Plan aims to focus on meeting these challenges and ensure network efficiency, and to ensure that emerging issues are promptly taken into the mainstream of regulatory activities. To further strengthen the Commission the Nigerian Communications Act, 2003 was promulgated. To further strengthen the Commission the Nigerian Communications Act, 2003 was promulgated.

6. 6 Strategic thrust for 2004 -2006 is “Attaining Efficiency in the Telecoms Industry”. Emphasis will be placed on efficiency in telecom service delivery and improved quality geared towards delighting the ‘Consumers’. The 2005 sub-theme is Consumer Satisfaction as a pathway to Growth.

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8. 8 Scorecard

9. 9 Scorecard Cont’d

10. 10 Scorecard Cont’d

11. 11 Scorecard Cont’d Trend in connection charges and tariffs in the mobile sector.

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13. 13 REGULATORY CHALLENGES Appropriate regulations for the rapidly expanding industry. Appropriate regulations for the rapidly expanding industry. Need to consolidate on improvement on infrastructure development. Need to consolidate on improvement on infrastructure development. Managing Competition. Managing Competition. Increasing consumer awareness and rise of consumerism. Increasing consumer awareness and rise of consumerism. Expansion of network coverage and penetration evenly nation-wide through extension of services to underserved and unserved areas. Expansion of network coverage and penetration evenly nation-wide through extension of services to underserved and unserved areas. Increasing demand for new services. Increasing demand for new services.

14. 14 Regulatory Challenges Continued… Adequate information and data flow Adequate information and data flow Effective and timely regulatory decision making Effective and timely regulatory decision making Ensuring strict compliance through effective enforcement mechanisms. Ensuring strict compliance through effective enforcement mechanisms. Optimizing use of scarce resources. Optimizing use of scarce resources. Need to encourage research and development and local manufacture of telecoms equipments. Need to encourage research and development and local manufacture of telecoms equipments. Promoting more investments. Promoting more investments. Technology advancement and convergence issues. Technology advancement and convergence issues.

15. 15 Regulatory Challenges Continued…. Need to develop professional expertise in the various specialized functions in the Industry. Need to develop professional expertise in the various specialized functions in the Industry.

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17. 17 The SMP is structured to address these challenges. The thrust for 2005 comprises six (6) broad goals and sixteen (16) objectives and one hundred and twenty two (122) strategies.

18. 18 GOAL ONE Promote market entry, competition and universal access Ensure smooth market entry and promote competition in the telecommunication industry. Ensure the provision of reliable, affordable and efficient telecommunication services. Support the development of institutional framework and mechanisms to achieve the universal access. Ensure rapid deployment of services to the rural and undeserved areas.

19. 19 GOAL TWO ENSURE EFFECTIVE LEGAL FRAMEWORK FOR THE INDUSTRY AND ENHANCE ENFORCEMENT ACTIVITIES AND CONSUMER PROTECTION Deploy an effective enforcement system for compliance with license obligations, dispute resolution mechanism for licensed operators and service providers. Deploy an effective enforcement system for compliance with technical and operational standards. Establish effective consumer education and protection mechanisms. Provide regulations for the telecommunications industry.

20. 20 GOAL THREE ENSURE OPTIMAL USE OF SPECTRUM Increase efficiency of spectrum use and management. Ensure proper planning and monitoring of radio frequency spectrum.

21. 21 GOAL FOUR PROVISION AND MONITORING OF STANDARDS FOR THE TELECOMMUNICATIONS INDUSTRY Ensure the provision of the telecommunications services to internationally acceptable standards throughout Nigeria. Ensure efficient network management and optimisation.

22. 22 GOAL FIVE PUBLIC, PRIVATE AND INTERNATIONAL CO-OPERATION Disseminate information on activities of the Commission and enhance its public image. Foster and sustain national, regional and global relationships towards telecom development.

23. 23 GOAL SIX ESTABLISHMENT OF AN EFFECTIVE AND EFFICIENT ORGANISATIONAL FRAMEWORK Strengthen the Commission to effectively carry out its functions. Enhance the efficiency of the Commission’s processes.

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25. 25 COMPETITION IN TELECOMS INDUSTRY COMPETITION IN TELECOMS INDUSTRY RELIABLE AND AFFORDABLE SERVICES INSTITUTIONAL FRAMEWORK FOR UNIVERSAL ACCESS UNIVERSAL ACCESS PROVISION TELECOMS REGULATIONS SPECTRUM USE AND MANAGEMENT TELECOMS STANDARDS

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27. 27 Maintain a level playing field to ensure transparency and fairness in regulatory processes to elicit confidence from operators and other stakeholders alike. Simplify the process of licensing within the Commission and the removal of cumbersome and onerous regulations. Promote the provision of new license categories and services, which will provide a greater degree of choice for consumers and the opportunity for price reductions. Encourage and promote entry of organizations into the telecoms sector with adequate technical and financial capability to accelerate the roll out of network infrastructure deemed vital to the improvement of the Nation’s teledensity.

28. 28 Encourage and promote rapid deployment of telecommunications infrastructure nationwide. Develop policies to promote the deployment of advanced technologies, to increase the range of services offered to consumers and deliver cost benefits. Prevent anti-competitive conduct by operators within the retail and wholesale telecommunications markets including, but not limited to, product pricing and Interconnection Agreements. Define the structure of the various market segments within the industry to determine market power, market dominance and assess the level of competition within each market for effective regulatory efforts, and develop a competition policy for the industry.

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30. 30 Promote the provision of quality telecom services to consumers through effective competition and compliance with internationally recognized standards. Encourage the use of modern technologies that will enable improved quality and reduce cost thereby making services cheaper and more reliable. Conduct regular market monitoring and trend analysis. Ensure affordable tariffs for service provision across a range of products and services.

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32. 32 Support the creation of a Universal Service Provision Fund (USPF). Align existing licensing processes with Universal Access objectives and requirements. Establish a mechanism to involve relevant Government, Private and Rural Community organizations in decision-making regarding Universal Access programs.

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34. 34 Facilitate provision of telephony service to all rural and underserved areas. Develop appropriate regulations to ensure compliance with network roll out obligations. Encourage use of technology specifically aimed at delivering cost and service benefits for rural applications.

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36. 36 Provide licensed operators with clear Rules, Regulations and Guidelines. Provide licensed operators with clear Rules, Regulations and Guidelines. Prepare and publish relevant Regulations. Prepare and publish relevant Regulations. Monitor Global Trends in ICT to ensure Regulations conform with international best practice. Monitor Global Trends in ICT to ensure Regulations conform with international best practice. Provide procedure for compliance with enabling law. Provide procedure for compliance with enabling law.

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38. 38 Provide sufficient clarity in the process and management of spectrum to be able to make spectrum available for new services or emerging technologies when required. Provide and maintain a practical and accurate spectrum plan for the telecommunications industry and interested parties. Improve the transparency of the frequency assignment processes through the publication of regular information, consultation with interested parties and the development of radio communication standards.

39. 39 Encourage, and hence where appropriate, license the use of technology that will engender more efficient use of spectrum. Develop innovative licensing procedures which result in less bureaucracy and minimal interference in the process of spectrum assignment. Encourage sharing and re-use of spectrum, reduce spectrum size allocation and create incentives for freeing up spectrum.

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41. 41 Define and publish standards, both technical and operational, for all telecommunication facilities and sites throughout Nigeria. Resolve through negotiation or determination, as appropriate, technical disputes between the operators and service providers. Determine, through consultation with industry and interested parties, an Engineering Code of Practice for compliance by all operators and service providers.

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43. 43 Quality training institutions to bridge skill gaps. Provision of state of the art laboratory, teaching and research facilities in our educational sector. Total and comprehensive rehabilitation of the Power sector to encourage local manufacturing and reduce cost of providing services. Efficient and seamless interconnectivity of all systems and networks throughout Nigeria. Need to have reliable statistics, data and records to facilitate planning, monitoring and control. Provision of adequate Security to safeguard investment in the sector. The industry requires special remuneration packages to be able to attract specialists especially in regulation.

44. 44 Need to encourage manufacturing of telecoms equipment through Government policies. Ensure that there is unified policy framework for all Government agencies involved in ICT delivery in the country. Encourage the rollout of backbone transmission facilities nationwide to facilitate national connectivity by harmonizing the positions of all Government agencies involved in transmission development.

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46. 46 The aim of our Strategic and Policy Thrust for the next few years is to set a ‘path’ that will allow NCC provide the required leadership to consolidate achievements already made. Strive for efficiency in the industry and facilitate ‘innovation’ needed for a virile industry over the long term. Strive for efficiency in the industry and facilitate ‘innovation’ needed for a virile industry over the long term. Focus efforts will be geared toward ensuring that efficiency in the industry translates into tangible benefits to the “Consumers”, who will be the center piece of NCC’s regulatory activities.

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